Tuesday, October 20, 2026
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Rwanda Outlined Other Business Options After Shutting Down 250 Substandard Alcohol Factories

Rwanda Outlined Other Business Options After Shutting Down 250 Substandard Alcohol Factories

Rwanda’s Minister of Health, Dr Sabin Nsanzimana, recommended alternative investment opportunities for manufacturers affected by the closure of 250 factories producing substandard alcoholic drinks, highlighting food processing, agriculture and non-alcoholic beverages as potential business options.

The minister discussed the alternatives during a meeting of the National Consultative Forum of Political Organisations (NFPO) last week, where participants examined the government’s measures against alcoholic drinks that failed to meet safety standards.

Nsanzimana explained that some manufacturers had invested in the production of alcoholic drinks commonly known as ibyuma, which became increasingly widespread during the Covid-19 pandemic.

He said some producers initially used bananas to manufacture the drinks but later switched to ethanol mixed with powdered flavourings as banana prices increased.

The government subsequently intervened against producers whose beverages did not meet the required safety standards, resulting in the closure of 250 factories.

Nsanzimana also revealed that another 200 businesses had applied for production licences but had not yet begun operations when the restrictions were introduced.

These applicants were separate from the factories that had already been producing substandard alcoholic drinks.

The minister further acknowledged that some manufacturers had been operating without licences, although he did not specify their number.

With the affected factories closed, Nsanzimana encouraged their owners to consider investments in other sectors rather than return to producing the prohibited beverages.

He identified food processing, nutritious products, non-alcoholic drinks and agriculture as alternatives that could allow business owners to continue operating while meeting consumer needs.

The discussions also addressed the responsibility of regulatory institutions in monitoring alcohol production and ensuring that manufacturers comply with established standards.

Members of the forum questioned how such a large number of factories had been able to operate despite existing licensing and inspection requirements.

Dr Alvera Mukabaramba, president of the Party for Progress and Concord (PPC), expressed concern about the expansion of the sector and called attention to the need for stronger regulatory oversight.

She observed that the number of factories could have approached 500 if authorities had continued approving applications from prospective manufacturers.

The discussions highlighted the importance of ensuring that businesses seeking to enter the beverage industry meet safety requirements before beginning production.

RADIOTV10

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